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**adjusterjack** · 08-30-2019, 05:40 PM

Re: Title Company witholding Deed

Obviously they CAN to it because they ARE doing it.

Nobody HAS TO buy title insurance. Though it's a good idea and highly recommended. A quit claim deed only grants whatever interest the seller "may" have but doesn't guarantee that the seller has any at all. Even after you consolidate the lots, if somebody comes along and claims ownership of the lot you bought and sues you for it, you're SOL without title insurance.

If you can't get the deed from them, get a lawyer. Would probably cost you more to litigate than to buy the title insurance. Catch 22.

**Mack10** · 08-31-2019, 03:40 PM

Re: Title Company witholding Deed

Originally posted by Steve53

I bought an empty lot next to my lot(residence) from an LLC my city formed to implement a "side lot project" . I have a signed/notarized purchase agreement, I paid in cash (they cashed the check 3 months ago). The Land Title Company that has the deed says I have to buy Title Insurance from them or I can't have the deed.
Can they do that?
(Reasons I don't want insurance= House was torn down, its an empty lot/ the property was foreclosed then sheriff sale then to this LLC my city runs/ Part of the agreement is that i consolidate the lots, so the lot in question will soon no longer exist)
Purchase agreement states a Quit Claim Deed will be provided to me. It says nothing about having to purchase Title Insurance.

Ask them under what legal authority they think they have that right?
If they can't offer some very convincing authority they may be committing a crime.

**adjusterjack** · 08-31-2019, 05:57 PM

Re: Title Company witholding Deed

Originally posted by Mack10

Ask them under what legal authority they think they have that right?
If they can't offer some very convincing authority they may be committing a crime.

No, not a crime. A civil matter. Likely breach of contract.

**Steve53** · 09-01-2019, 07:37 AM

Re: Title Company witholding Deed

I did a Title search on the property and it was not foreclosed (via bank anyway). The house had a single owner as far back as the county records go, the house got condemned and torn down and the owner stopped paying the taxes. According to the Sheriff's Deed, the States lien for real estate taxes was cleared and the property was transferred to this LLC "without sale or appraisal" How much clearer could a title get?
It is my understanding that I can get anyone to draw up a Quit Claim Deed, I don't NEED the one from This particular Land Title company...I don't need to sue for it. So are you saying that Title companies can do what they want? Is there no Government oversite the dictates what is and isnt allowed? Is there some entity I can contact/ report this behavior to?

**adjusterjack** · 09-01-2019, 11:09 AM

Re: Title Company witholding Deed

Originally posted by Steve53

How much clearer could a title get?

What if something comes up that you couldn't find or didn't know what to look for?

I'll give you an example from my own experience. I am very good at data mining of public records. I looked at several houses earlier in the year, one of which met all my needs, especially a large enough back yard on which to build a garage/workshop. I learned earlier that subdivisions have recorded deed restrictions that limit what can be built on a property. I found them on previous prospects but found none on this one. I went into contract. A few days later the title company sent me the deed restrictions limiting the property to a three car garage and there was already a two car garage and I wanted to build a 5 car garage. Fortunately I was in the inspection contingency period and was able to cancel the purchase and get my earnest money back.

So, how did I miss that document? It was recorded under the name of the builder, not under the name of the subdivision like all the others.

That's why you buy title insurance. Because there could be something that can come back to bite you in the ass.

Originally posted by Steve53

It is my understanding that I can get anyone to draw up a Quit Claim Deed, I don't NEED the one from This particular Land Title company

As a practical matter you do. You can create one yourself and take it to the seller for signature only to be told "We don't deal with buyers you'll have to go through our title company."

Originally posted by Steve53

So are you saying that Title companies can do what they want? Is there no Government oversite the dictates what is and isnt allowed? Is there some entity I can contact/ report this behavior to?

I'm sure that there is some bureaucracy somewhere that regulates title companies where you can file a complaint. But that won't get you your deed any time soon.

I don't know what else to tell you. You may have to resign yourself to buying the title insurance or paying a lawyer to go after your deed for you.

**Steve53** · 09-01-2019, 11:56 AM

Re: Title Company witholding Deed

Part of the agreement is that I'm not allowed to build anyway....I'm also in a century home, one of the earliest neighborhoods (i can see downtown from my window). These lots were formed at least 150 years ago or more....
and so what did you're title insurance take care of or cover in your example? or did you just need to get a variance from the city?

**Steve53** · 09-01-2019, 12:02 PM

Re: Title Company witholding Deed

The Title company said that they require insurance with all the deeds they distribute. They are allowed to do what they choose I guess, but thats not typical and probably a lie

**adjusterjack** · 09-01-2019, 01:42 PM

Re: Title Company witholding Deed

Originally posted by Steve53

and so what did you're title insurance take care of or cover in your example?

Didn't go that far since I didn't incur any damages. Had I actually bought the house and started building, then found out, the cost to remove the building would have been covered.

Originally posted by Steve53

or did you just need to get a variance from the city?

A variance wouldn't have been necessary nor would it have helped. The city had no issue with the building as long as it was to code and within the building setback lines. Deed restrictions are enforceable by any property owner so the risk was a potential lawsuit who didn't like the building going up next door in non-compliance with the restrictions.

Originally posted by Steve53

The Title company said that they require insurance with all the deeds they distribute. They are allowed to do what they choose I guess, but thats not typical and probably a lie

Did they tell you under what authority they had the right to demand title insurance? Is there, perhaps, something in your purchase contract that obligates you to buy.

When I bought my house, the purchase contract obligated the seller to buy me an owner's title policy ($1200). I'd have bought it anyway. One time cost and peace of mind.

I also buy homeowners insurance even though I have no mortgage company telling me I have to have it. State law requires that I have auto insurance but I buy higher limits than the state requires.

Sorry I got off on a toot about why you should have the insurance. I spent 35 years in the insurance business and I've seen how people suffer when something happens to them that they thought would never happen. Nobody ever told me they wished they didn't have insurance when I sent out those claims checks.

Back to your issue. I seriously doubt that there is any law or regulation allowing them to demand title insurance. But I also doubt that any bureaucracy will be of much help, though you are free to file a complaint.

Name your state.

The insurance departments typically regulate title companies in the sale of insurance. Try yours.

**Lexus** · 09-02-2019, 08:59 AM

Re: Title Company witholding Deed

Generally title insurance is necessary for all sorts of property, so empty lot is also a subject for title insurance.

**adjusterjack** · 09-02-2019, 09:01 AM

Re: Title Company witholding Deed

Originally posted by Lexus

Generally title insurance is necessary for all sorts of property, so empty lot is also a subject for title insurance.

No help.

As usual.

**Steve53** · 09-02-2019, 08:31 PM

Re: Title Company witholding Deed

Since you've been in the insurance industry, hopefully you can answer a question everyone is avoiding. Part of the "deal" is that i join this new empty lot with the lot my house is on (consolidate plots) When I do that, would that not void the insurance since the lot i have Title insurance would no longer exist?

**Steve53** · 09-02-2019, 08:34 PM

Re: Title Company witholding Deed

I'm finding a lot of this in the industry as I try to find answers. Its like the Realty business is a cult. No questions or answers, just do as we say....
This pertaining to the Lexus statement and your respose to it....im new here and haven't figured out how the "quote" thing works yet

**adjusterjack** · 09-02-2019, 10:29 PM

Re: Title Company witholding Deed

Originally posted by Steve53

Since you've been in the insurance industry, hopefully you can answer a question everyone is avoiding. Part of the "deal" is that i join this new empty lot with the lot my house is on (consolidate plots) When I do that, would that not void the insurance since the lot i have Title insurance would no longer exist?

The title policy is permanent as long as you own the property. After you combine the lots there can still be claim against that section that was once a separate lot. You'd be covered for that. Even if the claim was unfounded your legal fees would be taken care of.

Originally posted by Steve53

I'm finding a lot of this in the industry as I try to find answers. Its like the Realty business is a cult. No questions or answers, just do as we say....

Yeah, I found that out this year while I was looking for a house to downsize to. It's been 20 years since I sold my rentals (to investors) and bought my last house from a FSBO. No realtors.

This time around, every house I looked at had a realtor and the purchase contracts are 10 pages.

Originally posted by Steve53

This pertaining to the Lexus statement and your respose to it....im new here and haven't figured out how the "quote" thing works yet

Click on the green quote button before you type a message. The other person's message appears in your space with bracketed wording at both ends. If you want to comment on the whole message leave it as is.

If you want to comment on part of the message, delete the phrases that you don't want to comment on.

If you want to comment on more than one part of the message select the entire message and copy it. Then delete the parts of each message that you don't want to comment on.

That's what I just did when I separated the two parts of your last message.

**Steve53** · 09-04-2019, 03:51 PM

Re: Title Company witholding Deed

If you want to comment on part of the message, delete the phrases that you don't want to comment on.

Thanks for all your help!!!